NISM-Series-IV: Interest Rate Derivatives Certification Examination
1 / 50
Which of the following has higher credit risk?
2 / 50
Credit spread is the price of ___________.
3 / 50
If the long-term rate is 10% and short-term rate is 8%, the shape of term structure of rates is ___________.
4 / 50
The concept of “accrued interest” applies to which of the following?
5 / 50
If the coupon of the bond increases, its Modified Duration will __________. (Other things remaining constant).
6 / 50
Which of the following is the role of derivatives?
7 / 50
Which of the following derivatives have the largest market size globally?
8 / 50
__________ take position in Interest Rate Derivatives to reduce interest rate risk.
9 / 50
Which of the following is derivatives?
10 / 50
_______ are derivatives with underlying as theoretical bond and not a physical bond.
11 / 50
What is the settlement method for 91-day bill futures?
12 / 50
Which of the following is the last trading day for cash settled 10-year bond futures?
13 / 50
Total number of derivatives contracts outstanding is called __________
14 / 50
Person goes short in a futures contract at Rs.100 and on expiry underlying price is Rs. 101, he will ________.
15 / 50
If participant buy 10 lot of single bond futures at Rs. 99, then contract value _________.
16 / 50
The price which option buyer pays to option seller to acquire the right is called as ________.
17 / 50
Option buyer faces ________ risk and option seller faces __________ risk.
18 / 50
An option is _________, if on exercising it, the option buyer gets negative cash flow.
19 / 50
The difference between option premium and intrinsic value is __________.
20 / 50
Participants buy a put option with strike price of 98.50 at a premium of Rs. 0.20. On Expiry the bond price is Rs. 98.50. What is his net pay-off?
21 / 50
Hedging for multiple bonds in portfolio can be done by using _________.
22 / 50
In Bullish vertical spread using put strategy, trader _________.
23 / 50
If you expect the interest rate will go up in future, today you should _________.
24 / 50
A _________ is where a trader buys a particular month contract (Futures or Options) and sell (i.e., take an opposite position) of the same contract of a different month.
25 / 50
Limitation of Interest Rate Derivatives for Hedgers is mainly due to __________.
26 / 50
A client can place order in exchange traded interest rate derivatives through _______.
27 / 50
A Buy or a Sell order(s) which is/are lying unmatched in the order book are known as ________________.
28 / 50
A ________ order is classified as price related condition.
29 / 50
Due to denial of matched orders by client/s, which type of risk arises?
30 / 50
If the base rate of Overnight MIBOR futures is Rs 5, then its operating range will be _______.
31 / 50
In the clearing corporation, clearing is carried out by a process called _______ netting.
32 / 50
Interoperability of clearing corporation framework is allowed for all the products available in the Indian securities markets, EXCEPT: __________.
33 / 50
Daily Mark to market settlement of Exchange traded interest rate future contract is __________.
34 / 50
____________ are the maximum exposure levels which the entire market can go up to and each trading member or investor can go up to.
35 / 50
As a Risk Reduction Measure, all unexecuted orders shall be cancelled once stock broker breaches ________ collateral utilization level.
36 / 50
In terms of jurisdiction of regulator, the regulation of interest rate derivatives is similar to that of ___________.
37 / 50
RBI guideline on Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 permit _______________ to participate in interest rate derivatives contract.
38 / 50
Position limits guideline for Exchange traded interest rate derivatives is provided by __________.
39 / 50
Insurance companies are allowed to participate in interest rate futures only for _____.
40 / 50
What is the Base Minimum Capital requirement specified by the SEBI for only Proprietary trading without Algorithmic trading (Algo)?
41 / 50
Guidance Notes on Accounting for Derivatives Contract recognise following type of hedging for hedge accounting: ____________.
42 / 50
Which of the following accounting standards of Institute of Chartered Accountants of India (ICAI) defines the accounting for derivatives?
43 / 50
Usually, income from Exchange traded derivatives is treated as _________.
44 / 50
Loss on derivative transactions which are carried out in a “recognized stock exchange” can be set off against any other income during the year, except _________.
45 / 50
Loss on derivative transactions which are carried out in a “recognized stock exchange” can be carried forward for a period of ________ assessment years.
46 / 50
Investors can have grievances against _______________.
47 / 50
__________ is the fund created to take care of legitimate investment claims, which are not of speculative nature of the clients of defaulting member.
48 / 50
Arbitration is a ________ judicial process.
49 / 50
Execution of Power of attorney by the client in favour of stock broker is _________.
50 / 50
Subsequent to KYC, broker has to upload the KYC information in _______ system.
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